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Allama Iqbal Open University

Production & Operations Management


Assignment No.2
Name: Komal Javaria
Level: BBA(4 Years)
Semester: 5th(spring)2023
Registered I.D: 21PLR03149
Course Code: 8418
Total Quality Management (TQM)
(i) Introduction:
In order to capture increased market share, quality had been the main concern of every
manufacturer since old days. Started with the inspection concept moved to the quality control
concept, when it was realized that making the inspection department also responsible for quality of
the product would be counterproductive.

Concept of quality control emphasizes self-inspection and appropriate systems to ensure


quality by identifying defectives and eliminating them. Help of statistical quality control and sample
analysis were also undertaken.

Then arose the concept of quality assurance. But the quality movement did not stop with this,
and the attempt is to continuously improve the quality and assure higher and higher standards of
quality, offer better products to the consumer, ensure better and longer service, and improve the
utility of the product.

It was felt that quality is not the job of quality control department only but other departments
like sales, procurement, material handling, accounting, industrial relations, design, production,
forecasting, marketing, stores, after sales service have also to contribute substantially.

Thus quality is the responsibility of all the employees. The workers should run the system,
managers should design, and improve the systems, while top management should provide leadership
and team spirit.

In a ‘Total Quality Management’ (TQM) concept, the word quality has a wider meaning, it
means quality of output of every department and by every employee, cleanliness, orderliness,
punctuality, customer service, standardization of works and continuous efforts for their im-
provement are also part of T.Q.M. In this, needs of the customer are constantly monitored to
improve the products and processes to meet their requirements.

In Total Quality Management program, voluntary participation of work people is sought for the
quality of the task. Effective T.Q.M. results in greater customer satisfaction, fewer defects, less
waste, reduced costs, improved profitability and increased productivity. For the effectiveness of
T.Q.M. program a careful analysis of the customers’ needs, and an assessment of the extent to
which these needs are currently met, and a suitable plan to fill up the gap between the current level
and the expectation is necessary.

For the success of T.Q.M., top managers must provide vision, reinforce values emphasizing
quality, set quality goals and deploy necessary resources for these quality programs. For this
purpose, training and development free flow of information is essential. The top managers must
continuously monitor, evaluate, get feed-back about the T.Q.M. program and take necessary steps
for its improvement.

Customer’s satisfaction is the most important aspect of T.Q.M. The customer may be external
to the organization or may be inside the organization. Meeting the needs of outside customers
depend on meeting the needs of the inside customers. Inside customer is an individual or department
receiving the output of another individual or department of the concern.

The T.Q.M. involves effective decision making, problem solving and integration of Quality
Planning, Quality Implementation and Quality improvement strategies of all the departments of an
organization, committed and involved employees, lower costs, higher revenue and high profits for
the organization.

(ii) Meaning of Total Quality Management (TQM):

Total Quality Management (TQM) is a very popular term which goes with the cultures of
many manufacturing and service sectors. TQM is a philosophy, a set of tools and a process whose
application yields customer’s satisfaction and continuous improvement as output.

(a) Philosophy:

The philosophy of TQM and the process differs from traditional philosophies and processes in
that everyone in the company can and must practice it. TQM combines cultural changing tactics and
structured technical techniques whose focus is on internal and external customers satisfaction.

(b) Requirements:

An important requirement of TQM is that it requires the involvement as well as commitment


of executive and not just their interest on implementation part. TQM in addition to satisfaction of all
customer requirements so as to retain them, improves internal processes to increase profits and
generates new business from new products, services and markets.

© Scope:

QMS scope covers all functions within an enterprise/industry from sales and marketing
through design production and service. TQM aims to broaden the concept of quality so that quality
moves from a product appraisal function to a corporate imperative for excellence.

There are three words in TQM-Total, quality and management.

 By total mean:
o All areas/fields and functions in any unit/organization.
o All activities.
o All employees/workmen.
o All time.
 By quality mean:
o Product or services that satisfy the consumer requirements and expectations completely on a
continuous basis.
o The above meaning of quality has completely changed its usual meaning that Quality means
product produced exactly according to specifications.
 By management mean:
o Quality does not come up at its own, it needs planning and management.
o Quality is a management function and everybody in the organisation is responsible for it. It
therefore needs systematic approach.

According to Feigenboum TQM is defined as “effective system for integrating. The quality
development, quality maintenance and quality improvement efforts of various groups in an
organisation so as to enable production and service at the most economical level which allow
for full customer satisfaction.”

(iii) History of Total Quality Management:


High customer demand for quality has been widely recognized as a main motive tor
implementing corporate quality management. Yet, to satisfy such demand, innovative techniques
and services alone are no longer sufficient. Rather, the whole system of management, from the top
to the frontline operators, needs to be committed to achieving the corporate objectives and policies.

Total Quality Management (TQM) has been introduced worldwide as an option providing a
new insight into quality management. Through such management, companies will improve their
quality in terms of not only products and services, but also human resources and relationships. TQM
seeks quality in long-term perspectives, through the strong commitment of all levels of employees
to obtain corporate objectives.

The significant results of TQM application in large globally operating companies such as Ford,
Chrysler, Toyota, Fuji Xerox, Philips, Panasonic (Matsushita), NEC, and Nissan have been widely
recognized as success stories in company development. TQM has been introduced in many
industries: not only in production, but also in service industry, as seen in the cases of Singapore
Airline and some major banks.

The concept of TQM will be introduced, followed by its overall objectives and procedures. The
historical development of TQM provides an insight to TQM development worldwide. As a criterion
to measure the development of TQM the Malcom Baldrige Award, the first national quality award in
the United States.

Additionally, a comparative description of the Deming Prize in Japan will provide examples of
different forms of quality award at the national level and how these awards contribute to the
development of quality management systems in the country.

International Organization for Standardization (ISO) issues and their fusion with TQM and OCC
are also crucial when one talks about quality. The basic relationship between the ISO 9000 series
and TQM/OCC will be explained as a complement to these discussions on TQM activities.

(iv) Definition of TQM:


“TQM is a set of systematic activities carried out by the entire organization to effectively and
efficiently achieve company objectives so as to provide products and services with a level of quality
that satisfies customers, at the appropriate time and price.”
“TQM” is an interlocking arrangement of procedures and practices that ensures that all
employees in every department are adequately trained and directed to continuously implement
aligned improvements in Quality, service and total costs, such that customer expectations are met.

Total Quality Management is commonly expressed in conjunction with business excellence. It


is a scientific management methodology that values the quality of companies and organizations-
quality not only in products, but also in their processes and in their organization for quality
management.

According to the TQM Committee, in the 21st century a company is to seek quality by
establishing respectable existence and a co-delighting relationship with stakeholders.

In order to accomplish this, the committee continues, “it is crucial that the company achieve
competitive and praised ability, technology, speed and flexibility, and vitality.” And TQM has a
significant role to play to meet those requirements.

TQM is a management method in which quality is required in all manners, to satisfy customer
requirements. It involves every employee’s daily commitment in the office, which differentiates
TOM from other management systems.

The term everybody here implies all levels in the organization from frontline operators to
middle management to executive management. All of the problem solving processes by all parties
contributes to strengthen the organizational capacity and management of the company.

TQM is not a program. It is “a strategy, a way of doing businesses, a way of managing, a way of
looking at the organization and its activities”.

Therefore, the success of TQM is measured not only by its tangible outcome but also by both the
way in which the organizational structure is established and the processes by which corporate
objectives are achieved.

(v)Elements of Total Quality Management:

(a) Customers Satisfaction.

(b) Employees involvement.

© Morale of employees.

(d) Quality Control Circles and suggestion system.

(e) Higher revenue.

(f) Lower cost.

(g) Quality control.

(h) Control of Production.


(I) Quality planning.

(j) Quality Improvement.

(k) Quality implementation.

(l) Quality Assurance System.

(m) Vendor control and quality in procurement.

(n) Customer relationship management.

(o) Total organization involvement.

(p) Measurement information analysis.

(q) Quality education and training.

(r) Strategic quality management.

(s) Leadership.

(vi) Actions Necessary for T.Q.M.:


In order to implement T.Q.M., following actions are necessary:

(a) Adopt new philosophy of refusing to allow defects.

(b) Create consistency of purpose for improvement.

(c) Improving production and service quality should be a continuous process.

(d) Cease dependence on mass inspection and adopt Statistical Quality Control.

(e) Insist quantifiable evidence from the suppliers about their products.

(f) All employees should be trained, retrained and refresher courses be arranged.

(g) Provide proper tools to all the employees.

(h) Adopt proper communication system.

(I) Encourage productivity.

(j) Encourage coordination between departments.

(k) Permanent commitment of top management to quality.


(l) Respect towards ‘work’ and ‘humanity’.

(m) Adopt consumer orientation and not the product orientation.

(n) Objective should be, ‘Quality first, and not the short term profits’.

(o) Use facts and data.

(vii) Techniques Utilized for TQM:


(a) Surveys of Customer’s satisfaction.

(b) Quality function deployment.

(c) Total quality seminars and quality training.

(d) Cost of quality statement.

(e) Departmental goal analysis.

(f) Top team work shops.

(g) Quality circles & suggestion schemes.

(h) Visible data & process management.

(I) Statistical process analysis.

(j) Process capability analysis.

(k) Just in Time manufacturing.

(l) Fool proofing.

(m) Quality Improvement Team (QIT).

(n) Business Process Reengineering (BPR).

(o) Standardization of production processes.

(viii) TQM Model:


The focus of TQM is customer satisfaction.

(ix) Deming’s Approach to TQM:

Deming is among the pioneers of the TQM concept. His views on quality improvement
consist of fourteen point approach as follows:

(a) Aim at creating consistency of purpose for improving products and services.

(b) Aim at adopting the new philosophy for making the accepted level of defects, delays or mistakes
unwanted.

(c) Aim to stop reliance on mass inspection as it neither improves nor guarantees quality. Remember
that team work between the firm and its suppliers is the way for the process of improvement.

(d) Try to stop awarding business with respect to price.

(e) Aim to discover problems. Management must work, continually to improve the system.

(f) Aim to take advantage of modem methods used for training. In developing a training
program, lake into consideration such items as:

 Aim at identification of company objectives.


 Aim at identification of training goals.
 Aim at understanding of goals by everyone involved.
 Aim at orientation of new employees.
 Focus on training of supervisors in statistical thinking.
 Plan on team building.
 Aim at analysis of the teaching requirement.
(g) Aim to institute modem supervision approaches.

(h) Aim to tear down department barriers so that everyone can work as a team member.

(I) Aim to eradicate fear so that everyone involved may work to his or her full capacity.

(j) Try to eliminate items such as goals, posters and slogans that call for new productivity levels
without improvement of methods.

(k) Aim to make your organization free of work standards prescribing numeric quotes.

(l) Aim to eliminate factors that inhibit employee workmanship pride.

(m) Aim to establish an effective education and training program.

(n) Establish ways to develop a program that will push the above 13 points every day for never
ending improvement.

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